TPT January 2016

24 / 106

Industry News
22 January 2016
Schuler streamlining
production in Germany
SCHULER AG is streamlining its
production in Germany and will only
be manufacturing at four facilities in
future, instead of the current seven.
“We will merge the wide range of
production sites in Germany resulting
from acquisitions made in the past,”
explained CEO Stefan Klebert following
a meeting of Schuler AG’s supervisory
board in Göppingen, Germany.
“This will create more efficient
manufacturing structures and help us
remain successful in the face of fierce
international competition.” The press
manufacturer has strongly expanded
its manufacturing activities in foreign
markets over the past years in order to
meet shifts in its global demand profile.
In addition, changes in its product
mix have resulted in revised capacity
needs. Schuler has also successfully
entered new market segments, such as
equipment for the production of large
pipes or high-speed railway wheels.
The plant manufacturer acts as
a systems supplier for these major
orders and buys in a large number of
the components – thus reducing the
proportion of in-house production.
The Göppingen plant will produce all
presses that can be fully assembled
and put into operation in-house. At
this site, the company is currently
investing €40mn in the construction of
a technology and development centre
as well as a test centre for lightweight
construction in the automotive sector.
The facility in Erfurt will be the
company’s only German production
site for large-scale presses. Over the
past few years, the press manufacturer
has invested tens of millions in modern
manufacturing equipment.
“This is a clear sign that Germany will
remain our high-tech location and home
base – despite all our globalisation
activities,” explained Mr Klebert.
At the same time, the production of
presses and new machine components
will be discontinued at the company’s
sites in Netphen (by the end of 2016),
Waghäusel (by the end of 2017) and
Weingarten (by the end of 2017).
External assembly, commissioning and
service will be maintained at all three
sites, and engineering and support
activities will be continued.
The planned changes will affect
around 450 jobs in Germany in the
medium term. Schuler will try to
implement these measures in a manner
which is as socially compatible as
possible.
This can be achieved in part by
transferring staff to other business units
or sites, giving preference in the case
of internal vacancies, offering semi-
retirement programmes or making
voluntary redundancy agreements.
The company has estimated that
the consolidation of its manufacturing
structures in Germany will involve costs
of around €55mn.
Provisions will be formed and costs
incurred for the major share of this
amount in fiscal year 2015. Following
the completion of these measures,
the board of management expects
annual cost reductions of €30mn to
€35mn.
In 2011 Schuler launched a strategy
and growth programme in connection
with the acquisition of Müller
Weingarten in 2007.
In addition to realignment with target
markets and technology fields, this
also involved a streamlining of the
group’s organisation and a reduction of
duplicate structures.
Schuler continued the strategic
project in 2013 in order to adapt
the company to changing global
challenges.
“All in all, the measures helped
Schuler return to growth and achieve
its current healthy financial status after
the difficult years of 2009 and 2010,”
said Mr Klebert.
In its fiscal year 2015, Schuler
expects sales to exceed the prior-year
figure of €1.18bn.
The operating result before special
items for factory consolidation is
expected to be on a par with the healthy
prior-year level.
Schuler – Germany
Website:
The facility in Erfurt will be the company’s
only German production site for large-scale
presses